wayward's - a bit peeved thursday, page-5

Very interesting night’s trading overseas.

Although I, along with far too many people, was looking for some sort of correction, I did mention yesterday that it wasn’t really in the bag after just one day’s decline in New York. This morning there are even more doubts in my mind about whether we are going to get a worthwhile correction just yet. The Dow and SPX both finished in opposite directions and aren’t really saying much but I was very impressed with how the RUT and NASDAQ traded. I thought they looked better than the two big ones. Thinking about this, could it mean that the buying is spreading to more stocks? If that proves to be the case then it would be extremely bullish as it would suggest more “risk off” as buyers were prepared to look a bit further down the lists.

I’m wondering if the SPX, which has basically just been edging up, could now run back up to the upper Bollinger Band and then frustratingly for the bears, continue to follow it higher - something along the line of what it did between last January to March.

The market I think which will give us confirmation one way or the other is the DAX. It has been trading in a very interesting way for some time now. Last night it had a sharp fall but I am prepared to say that if it can pull out of this decline, then we are going to have to wait for a correction so I will be watching that closely tonight. I think one more trading day everywhere will hopefully clear up the picture.

Iron ore prices down again. Markets being what they are, it probably needs the announcement of some major project being pulled. Coal prices have improved quite a bit over the past few weeks with their worse levels hit around the time of announcements of the closing of a number of coal mines in Queensland. The latest iron ore price is 104.70.

Gold was lovely even if getting overdone but gold does have a habit of behaving like that.